TORONTO, May 24 /CNW/ - Pursuant to its recent filing of the fiscal 2006 and first 6 months of fiscal 2007 financial statements, Luxell Technologies Inc. (TSX:LUX) is pleased to announce that it is beginning to see a resurgence in monthly sales and that it has been successful in implementing a first phase of cost reductions.
Since it's financial and debt restructuring was completed in August 2006, Luxell has made many changes that were designed to substantially increase the performance of the company. First among these was the placement of its new President, Alec Couckuyt, who brought more than a decade of corporate turnaround experience to Luxell. Since joining the company, Alec has brought in a completely new business development, engineering, and operations management team, as well as instilling a renewed sense of energy and commitment to exceeding delivery dates and customer expectations in the company.
After three separate rounds of important and innovative financings, culminating in the recently announced agreement to wind-up the Lux Operating Limited Partnership, Luxell is now ready to embark on a more conventional system of financing its growth and meeting its capital requirements, through a combination of simple equity placements and the eventual placement of traditional revolving credit facilities.
These more conventional financing structures are being enabled by the fact that, as a result of all of the efforts to turn the financial prospects of the company around and bring it into the black, the Company is now experiencing significant growth in its sales orders. In the fiscal years ending August 31, 2007 and 2008, the Company expects the growth in sales will continue at an even more impressive pace.
At the same time, the turnaround team has been successful in decreasing expenses by over 20% and while a net loss is still anticipated in fiscal 2007, the Company expects that with the current growth in sales and continuing cost cutting efforts, the Company believes it will result in the first ever net profit in fiscal 2008.
Luxell continues to maintain an excellent reputation in the industry by producing a high quality, customizaeable product at competitive price and delivery levels. Luxell's business development team continues to develop its working relationships with existing and prospective customers and focusing on building collaborative partnerships as the ruggedized flat panel display designer and supplier of choice.
In sum, the Luxell turnaround plan is beginning to work. "By concentrating on our core competencies, and identifying the most expedient and conclusive way in which projects that did not provide an immediate sales return could be brought to an end, we have helped Luxell confirm its standing in a very specialized marketplace. By doing this, Luxell has demonstrated that it is well on its way to holding a leadership position in the Ruggedized Flat Panel Display market," says President Alec Couckuyt. "The road to full recovery and success will undoubtedly include a few more bumps on the way but whatever they may be, we are very confident that we will be able to handle them and that we are on the right road."
About Luxell
------------
Luxell Technologies Inc. ("LTI") has its origins in the research and development of optical improvement technologies (contrast enhancement) known collectively as the Black LayerTM Technology. Application of this technology is in Flat Panel Display (FPD) devices. These devices are used in a wide array of products requiring outdoor or ambient sunlight conditions and usually in a rugged environment. To date, LTI has concentrated on air and ground vehicle installations in the defense industry in North America and Europe.
Luxell's products have been sold to companies such as Boeing, Airbus and McDonnell Douglas. Direct sales contracts have been achieved with Tier 1 companies (integrators) which supply OEM component parts to manufacturers such as Northrop Grumman-Lital and Rheinmetall in Europe as well as Lockheed Martin in North America.
Luxell's objective, based on achieving its profitability goals, is to extend into niche segments of other sectors such as mining, industrial, and the parts replacement market which is significant as owners of older aircraft replace cathode ray tube (CRT) displays with higher quality FPD's.
The next generation of technology in this sector is expected to be Organic Light Emitting Diode (OLED) FPD's and this is a segment in which Luxell expects to derive a competitive benefit from its own technology, which is well under development, but this market has not materialized to date.
Luxell is an ISO certified company with approximately 45 employees located in its Mississauga facilities and is recognized for the quality of its products in the industry sectors in which it competes.
%SEDAR: 00008266E